By TOM WRIGHT
JAKARTA, Indonesia -- Antiterrorism police killed two alleged terrorists and arrested three others suspected of involvement in last month's deadly hotel bombs in Jakarta, a police spokesman said. The nighttime raid on a house near Jakarta uncovered more than 1,000 pounds of explosives, and a car fitted out for another terrorist attack, said Nanan Sukarna, the police spokesman.
Police in Indonesia's Central Java province stand guard while bystanders look on Friday, as authorities raid a house in search of suspected militants.
Meanwhile, a standoff with terrorists at a house near Temanggung, a town in central Java, a province on Indonesia's main island, which began at 5 p.m. local time on Friday continued on Saturday morning. Police say they believe inside the house was Noordin Mohamed Top, a Malaysian citizen who they say orchestrated the JW Marriott and Ritz-Carlton hotel bombings, which killed nine people, including the suicide bombers.
Mr. Sukarna said four people were inside the Central Java house, which is owned by a religious teacher in a local school. Two other people were arrested earlier Friday in the area, Mr. Sukarna said.
Mr. Noordin is wanted in connection with a number of terrorist attacks against Western targets in Indonesia in 2003 to 2005. Mr. Sukarna said the dwelling raided overnight near Jakarta was used by Mr. Noordin as a safe house two days after the hotel attacks.
Friday's possible breakthrough comes as Indonesians were showing their frustration over the failure of police to make a major arrest three weeks after the bombings.
Indonesia, a secular Muslim-majority nation, has done much to rein in terrorism in recent years, including arresting hundreds of militants. Few of the nation's 240 million people support militant Islam. The government needs to do more to monitor hard-line Islamic schools, which have given shelter to Mr. Noordin and members of his small network in recent years, experts say.
Although Mr. Noordin's terrorist group includes only about 30 or so individuals, the group can rely on a network of Islamists to help hide members, says Sidney Jones of the International Crisis Group, a Brussels-based conflict-resolution body.
—Yayu Yuniar contributed to this article.Write to Tom Wright at tom.wright@wsj.com
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